MARKETING VOCABULARY From the Glossary of Marketing Management (2002) of Phillip Kotler Editted by TuongKinhQuoc – CMVC – 13/03/2007 To my Dad with love on his birthday Look for… A Look for… B Look for… C Look for… D Look for… E Look for… F Look for… G Look for… H Look for… I Look for… J Look for… K Look for… L Look for… M Look for… N Look for… O Look for… P Look for… Q Look for… R Look for… S Look for… T Look for… U Look for… V Look for… W Look for… A * Accessibility * Action ability * Actual product * Adapted marketing mix * Administered VMS * Adoption * Adoption process * Advertising * Advertising objective * Advertising specialties * Affordable method * Age and life-cycle segmentation * Agent * Allowance * Alternative evaluation * Annual plan * Approach * Atmospheres * Attitude * Augmented product * Available market Look for… B * Balance sheet * Barter transaction * Basing-point pricing * Behavioral segmentation * Belief * Bench marking * Benefit segmentation * Brand * Brand equity * Brand extension * Brand image * Break-even pricing (target profit pricing) * Broker * Business analysis * Business buying process * Business market * Business portfolio * Buyer * Buyer-readiness stages * Buyers * Buying centre * By-products * By-product pricing Look for… C * Capital items * Captive-product pricing * Cash-and-carry retailers * Cash-and-carry wholesalers * Cash cows * Cash discount * Cash refund, offers (rebates) * Catalogue marketing * Catalogue showroom * Category killers * Causal research * Channel conflict * Channel level * Closed-end questions * Closing * Co-branding * Cognitive dissonance * Commercial online services * Commercialization * Company and individual brand strategy * Comparison advertising (knocking copy) * Competitions sweepstakes, lotteries, games * Competitive advantage * Competitive-parity method * Competitive strategies * Competitor analysis * Competitor-centered company * Complex buying behavior * Concentrated marketing * Concept testing * Consumer buying behavior * Consumer market * Consumer-oriented marketing * Consumer product * Consumer promotion * Consumer relationship-building promotions * Consumerism * Continuity Scheduling * Contract manufacturing * Contractual VMS * Convenience product * Convenience store * Conventional distribution channel * Copy testing * Core product * Core strategy * Comer sump * Corporate brand strategy * Corporate licensing * Corporate VMS * Corporate Web site * Cost of goods sold * Cost-plus pricing * Counter trade * Coupons * Critical success factors * Cultural empathy * Cultural environment * Cultural universals cultural * Culture * Current marketing situation * Customer-centered company * Customer database * Customer delivered value * Customer lifetime value * Customer sales force structure * Customer satisfaction * Customer value * Customer value analyses * Customer value delivery system * Cycle Look for… D * Decider * Deciders * Decision-and-reward system * Decision-making unit (DMU) * Decline stage * Deficient products * Demand curve * Demands * Demarketing * Demographic segmentation * Demography * Department store * Derived demand * Descriptive research * Desirable products * Differential advantage * Differentiated marketing * Direct investment * Direct-mail marketing * Direct marketing * Direct-marketing channel * Direct-response television marketing (DRTV) * Discount * Discount store * Dissonance-reducing buying behavior * Distribution centre * Distribution channel (marketing channel) * Diversification * Dogs * Door-to-door retailing * Durable product Look for… E * Economic environment * Electronic commerce * Embargo * Emotional appeals * Emotional selling proposition (ESP) * Engel’s laws * Enlightened marketing * Environmental management perspective * Environmentalism * Events * Exchange * Exchange controls * Exclusive distribution * Experience curve (learning curve) * Experimental research * Exploratory research * Export department * Exporting * External audit Look for… F * Fads * Family life cycle * Fashion * Financial Intermediaries * Fixed costs * FOB-origin pricing * Focus group * Follow-up * Forecasting * Fragmented industry * Franchise * Franchise organization * Freight-absorption pricing * Frequency * Full service retailers * Full service wholesalers * Functional discount (trade discount) Look for… G * Gatekeepers * Gender segmentation * General need description * Geodemographics * Geographic segmentation * Geographical pricing * Global firm * Global industry * Global marketing * Global organization * Going-rate pricing * Government market * Gross margin * Gross sales * Growth-share matrix * Growth stage Look for… H * Habitual buying behavior * Handling objections * Horizontal marketing systems * Human need * Human want * Hybrid marketing channels * Hypermarkets Look for… I * Idea generation * Idea screening * Implausible positioning * Income segmentation * Individual marketing * Industrial product * Industry * Inelastic demand * Influencer * Information search * Informative advertising * Initiator * Innovation * Innovative marketing * Institutional market * Private brand (middlemen, distributor or store brand) A brand created and owned by a reseller of a product or service * Problem recognition The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service * Product Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need It includes physical objects, services, persons, places, organizations and ideas * Product adaptation Adapting a product to meet local conditions or wants in foreign markets * Product-bin file pricing Combining several products and offering the bundle at a reduced price * Product concept The idea that consumers will favor products that offer the most quality, performance and features, and that the organization should therefore devote its energy to making continuous product improvements * Product development A strategy for company growth by offering modified or new products to current market segments Developing the product concept into a physical product in order to ensure that the product idea can he turned into a workable product * Product idea An idea for a possible product that the company can see itself offering to the market * Product image The way consumers perceive an actual or potential product * Product innovation charter (PIC) A new-product strategy statement formalizing managements reasons or rationale behind the firm’s search for innovation opportunities, the product/market and technology to focus upon, and the goals and objectives to be achieved * Product invention Creating new products or services for foreign markets * Product life cycle (PLC) The course of a product’s sales and profits over its lifetime, it involves five distinct stages: product development, introduction, growth, maturity and decline * Product line A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlet, or fall within given price ranges * Product line filling Increasing the product line by adding more items within the present range of the line * Product line pricing Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors’ prices * Product line stretching Increasing the product line by lengthening it beyond its current range * Product mix (product assortment) The set of all product lines and items that a particular seller offers for sale to buyers * Product position The way the product is defined by consumers on important attributes - the place the product occupies in consumers’ minds relative to competing products * Product quality The ability of a product to perform its functions; it includes the product’s overall durability, reliability, precision, ease of operation and repair, and other valued attributes * Product sales force structure A sales force organization under which salespeople specialize in selling only a portion of the company’s products or lines * Product specification The stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item * Product-support services Services that augment actual products * Production concept The philosophy that consumers will favor products that are available and highly affordable, and that management should therefore focus on improving production and distribution efficiency * Promotion Activities that communicate the product or service and its merits to target customers and persuade them to buy * Promotion mix The specific mix of advertising, personal selling, sales promotion and public relations that a company uses to pursue its advertising and marketing objectives * Promotional allowance A payment or price reduction to reward dealers for participating in advertising and sales- support programs * Promotional pricing Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales * Proposal solicitation The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals * Prospecting The step in the selling process in which the salesperson identifies qualified potential customers * Psychographic segmentation Dividing a market into different groups based on social class, lifestyle or personality characteristics * Psychographics The technique of measuring lifestyles and developing lifestyle classifications; it involves measuring the chief AIO dimensions (activities, interests, opinions) * Psychological pricing A pricing approach that considers the psychology of prices and not simply the economics; the price is used to say something about the product * Public Any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives * Public relations Building good relations with the company’s various publics by obtaining favorable publicity, building up a good ‘corporate image’, and handling or heading off unfavorable rumors, stories and events Major PR tools include press relations, product publicity, corporate communications, lobbying and counseling * Publicity Activities to promote a company or its products by planting news about it in media not paid for by the sponsor * Pull strategy A promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers * Pulsing Scheduling ads unevenly, in bursts, over a certain time period Purchase decision The stage of the buyer decision process in which the consumer actually buys the product * Pure competition A market in which many buyers and sellers trade in a uniform commodity - no single buyer or seller has much effect on the going market price * Pure monopoly A market in which there is a single seller - it may be a government monopoly, a private regulated monopoly or a private non-regulated monopoly * Push strategy A promotion strategy that calls for using the sales force and trade promotion to push the product through channels The producer promotes the product to wholesalers, the wholesalers promote lo retailers, and the retailers promote to consumers * Qualified available market The set of consumers who have interest, income, access and qualifications for a particular product or service * Qualitative research Exploratory research used to uncover consumers’ motivations, attitudes and behavior Focus-group interviewing, elicitation interviews and repertory grid techniques are typical methods used in this type of research * Quality The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs * Quantitative research Research which involves data collection by mail or personal interviews from a sufficient volume of customers to allow statistical analysis * Quantity discount A price reduction to buyers who buy large volumes * Quantity premium A surcharge paid by buyers who purchase high volumes of a product * Question marks Low-share business units in high-growth markets that require a lot of cash in order to hold their share or become stars * Quota A limit on the amount of goods that an importing country will accept in certain product categories; it is designed to conserve on foreign exchange and to protect local industry and employment * Range branding strategy A brand strategy whereby the firm develops separate product range names for different families of product * Rational appeals Message appeals that relate to the audience’s self-interest and show that the product will produce the claimed benefits; examples are appeals of product quality, economy, value or performance * Reach The percentage of people in the target market exposed to an ad campaign during a given period * Reference groups Groups that have a direct (face-to-face) or indirect influence on the person’s attitudes or behavior * Reference prices Prices that buyers carry in their minds and refer to when they look at a given product * Relationship marketing The process of creating, maintaining and enhancing strong, value-based relationships with customers and other stakeholders * Reminder advertising Advertising used to keep co it sinners thinking about a product * Resellers The individuals and organizations that buy goods and services to resell at a profit * Retailer co-operatives Contractual vertical marketing systems in which retailers organize a new, jointly owned business to carry on wholesaling and possibly production * Retailers Businesses whose sales come primarily from retailing * Retailing All activities involved in selling goods or services directly to final consumers for their personal, non- business use * Retailing accordion A phenomenon describing how the width of retailers’ product assortment or operations shifts over time: there tends to be a general- specific-general cycle However, it is possible that many retailing businesses evolve along a specific- general-specific cycle * Role The activities a person is expected to perform according to the people around him or her * Sales force management The analysis, planning, implementation and control of sales force activities It includes setting sales force objectives: designing sales force strategy: and recruiting, selecting, training, supervising and evaluating the firms salespeople * Sales force promotion Sales promotion designed to motivate the sales force and make sales force selling efforts more effective, including bonuses, contests and sales rallies * Sales promotion Short-term incentives to encourage purchase or sales of a product or service * Sales quotes Standards set for salespeople, slating the amount they should sell and how sales should lie divided among the company’s products * Salesperson An individual acting for a company by performing one or more of the following activities: prospecting, communicating, servicing and information gathering * Salutary products Products that have raw appeal bin may benefit consumers in the long run * Sample A segment of the population selected for marketing research to represent the population as a whole * Samples Offers to consumers of a trial amount of a product * Scaled-bid pricing Setting price based on how the firm thinks competitors will price rather than on its own costs or demand - used when a company bids for jobs * Seasonal discount A price reduction to buyers who buy merchandise or services out of season * Seasonally The recurrent consistent pattern of sales movements within the year * Secondary data Information that already exists somewhere, having been collected for another purpose * Segment marketing Adapting a company’s offerings so they more closely match the needs of one or more segments * Segmented pricing Pricing that allows for differences in customers, products and locations The differences in prices are not based on differences in costs * Selective attention The tendency of people lo screen out most of the information to which they are exposed * Selective demand The demand for n given brand of a product or service * Selective distortion The tendency of people to adapt information to personal meanings * Selective distribution The use of more than one, but less than all of the intermediaries that are willing to carry the company’s products * Selective retention The tendency of people to retain only part of the information to which they are exposed usually information that supports their attitudes or beliefs * Self-expect Suit-image, or complex mental pictures that people have of themselves * Self-service retailers Retailers that provide few or no services to shoppers; shoppers perform their own locate- compare- select process * Selling concept The idea that consumers will not buy enough of the organization’s products unless the organization undertakes a large-scale selling and promotion effort * Selling process The steps that the salesperson follows when selling, which include prospecting and qualifying, pre-approach, approach, presentation and demonstration, handling objections, closing and follow-up * Sense-of-infusion marketing A principle of enlightened marketing which holds that a company should define its mission in broad social terms rather than narrow product terms * Sequential product development A new-product development approach in which one company department works individually to complete its stage of the process before passing the new product along to the next department and stage * Served market (target market) The part of the qualified available market that the company decides to pursue * Service Any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything * Service inseparability A major characteristic of services - they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines * Service intangibility A major characteristic of services - they cannot be seen, tasted, felt, heard or studied before they are bought * Service perishability A major characteristic of services - they cannot be stored for later sale or use * Service variability A major characteristic of services - their quality may vary greatly, depending on who provides them and when, where and how * Services Activities, benefits or satisfactions that are offered for sale * Shopping product A consumer product that the customer, in the process of selection and purchase, characteristically compares with others on such bases as suitability, quality, price and style * Simultaneous product development An approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness * Single-source data systems Electronic monitoring systems that link consumers’ exposure to television advertising and promotion (measured using television meters with what they buy in stores measured using store checkout scanners) * Soda classes Relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviors * Societal marketing A principle of enlightened marketing which holds that a company should make marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-run interests and society’s long-run interests * Societal marketing concept The idea that the organization should determine the needs, wants and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well-being * Specialty product A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort * Specialty store A retail store that carries a narrow product line with a deep assortment within that line * Specialized industry An industry where there are many opportunities for firms to create competitive advantages that are huge or give a high pay-off * Stalemate industry An industry that produces commodities and is characterized by a few opportunities to create competitive advantages, with each advantage being small * Standardized marketing mix An international marketing strategy for using basically the same product, advertising, distribution channels and other elements of the marketing mix in all the company’s international markets * Stars High-growth, high-share businesses or products that often require heavy investment to finance their rapid growth * Statistical demand analysis A set of statistical procedures used to discover the most important real factors affecting sales and their relative influence; the most commonly analyzed factors are prices, income, population and promotion * Status The general esteem given to a role by society * Straight product extension Marketing product in a foreign market without any change * Straight rebuy A business buying situation in which the buyer routinely reorders something without any modifications * Strapline A slogan often used in conjunction with a brand’s name, advertising and other promotions * Strategic business-planning grid A portfolio planning method that evaluates a company’s strategic business units using indices of industry attractiveness and the company’s strength in the industry * Strategic business unit (SBU) A unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses An SBU can be a company division, a product line within a division, or sometimes a single product or brand * Strategic control Checking whether the company’s basic strategy matches its opportunities and strengths * Strategic focus A strategic planning tool to help marketers identify ways of achieving sales and profit growth Two routes productivity increases and volume expansion form the basis of analysis * Strategic group A group of firms in an industry following the same or a similar strategy * Strategic plan A plan that describes how a firm will adapt to take advantage of opportunities in its constantly changing environment, thereby maintaining a strategic fit between the firm’s goals and capabilities and its changing market opportunities * Strategic planning The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and it’s changing marketing opportunities It relies on developing a clear company mission, supporting objectives, a sound business portfolio and coordinated functional strategies * Style A basic and distinctive mode of expression * Subculture A group of people with shared value systems based on common life experiences and situations * Substantiality The degree to which a market segment is sufficiently large or profitable * Supermarkets Large, low-cost, low-margin, high-volume, self-service stores that carry a wide variety of food, laundry and household products * Superstore A store almost twice the size of a regular supermarket that carries a large assortment of routinely purchased food and non-food items and offers such services as dry cleaning, post offices, film developing, photo finishing , cheque cashing, petrol forecourts and selfservice car-washing facilities * Supplier search The stage of the business buying process in which the buyer tries to find the best vendors * Supplier selection The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers * Suppliers Firms and individuals that provide the resources needed by the company and its competitors to produce goods and services * Supplies and services Industrial products that do not enter the finished product at all * Survey research The gathering of primary data by asking people questions about their knowledge, attitudes, preferences and buying behavior * SWOT analysis A distillation of the findings of the internal and external audit which draws attention to the critical organizational strengths and weaknesses and the opportunities and threats facing the company * Systems buying Buying a packaged solution to a problem and without all the separate decisions involved * Target costing A technique to support pricing decision, which starts with deciding a target cost for a new product and works back to designing the product * Target market A set of buyers sharing common needs or characteristics that the company decides to serve * Target marketing Directing a company’s effort towards serving one or more groups of customers sharing common needs or characteristics * Target profit pricing See Break-even pricing * Tariff A tax levied by a government against certain imported products Tariffs are designed to raise revenue or to protect domestic firms * Team selling Using teams of people from sales, marketing, production, finance, technical support, and even upper management to service large, complex accounts * Technologies environment Forces that create new technologies, creating new product and market opportunities * Telemarketing Using the telephone to sell directly to consumers * Television marketing Direct-response television marketing (DKTV) * Territorial sales force structure A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson carries the company’s full line * Test marketing The stage of new-product development where the product and marketing program are tested in more realistic market settings * Time-series analysis Breaking clown past sales into its trend, cycle, season and erratic components, then recombining these components to produce a sales forecast * Total costs The sum of the fixed and variable costs for any given level of production * Total customer cost The total of all the monetary, time, energy and psychic costs associated with a marketing offer * Total customer value The total of all of the product, services, personnel and image values that a buyer receives from a marketing offer * Total market demand The total volume of a produce or service that would be bought by a defined consumer group in a * Total quality management (TQM) Programs designed to constantly improve the quality of products, services, and marketing processes * Trade-in allowance A price reduction given for turning in an old item when buying a new one * Trade (or retailer) promotion Sales promotion designed to gain reseller support and to improve reseller selling efforts, including discounts, allowances, free goods, co-operative advertising, push initiate the buying proposal and help define product specifications * Transaction A trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement and a place of agreement * Trend The long-term, underlying pattern of sales growth or decline resulting from basic changes in population, capital formation and technology * Two-part pricing A strategy for pricing services in which price is broken into a fixed fee plus a variable usage rate * Underpositioning A positioning error referring to failure to position a company, its product or brand * Undifferentiated marketing A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market without offer into value-building marketing investments * Uniform delivered pricing A geographic pricing strategy in which the company charges the same price plus freight to all customers, regardless; of their location * Unique selling proposition (USP) The unique product benefit that a firm aggressively promotes in a consistent manner to its target market The benefit usually reflects functional superiority best quality, best services, lowest price, most advanced technology * Unsought product A consumer product that the consumer either does not know about or knows about but does not normally think of buying * User The person who consumes or uses a product or service * Users Members of the organization who producers, wholesalers and retailers act as a unified system One channel member owns the others, has contracts with them, or has so much power that they all co- operate * Value pricing Offering just the right combination of quality and good service at a fair price * Value analysis An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized or made by less costly methods of production * Value-based pricing Setting price based on buyers’ perceptions of product values rather than on cost * Value chain A major tool for identifying ways to create more customer value * Variable costs Costs that vary directly with the level of production * Variety-seeking buying behavior Consumer buying behavior in situations characterized by low consumer involvement, but significant perceived brand differences * Variety store Self-service store that specializes in a wide range of merchandise It offers a wider range than specialist stores, but a narrower variety than department stores * Volume industry An industry characterized by few opportunities to create competitive advantages, but each advantage is huge and gives a high pay-off * Warehouse club (wholesale club, membership warehouse) Off-price retailer that sells a limited selection of brand-name grocery items, appliances, clothing and a hodgepodge of other goods at deep discounts 10 members who pay annual membership fees * Webcasting (push programming) Process whereby the online marketer defined geographic area in a defined time will use the product or service; users often send advertisements or information over period in a defined marketing environment under a defined level and mix of industry marketing effort * Wheel of retailing A concept of retailing which states that new types of retailer usually begin as lowmargin, low-price, low-status operations, but later evolve into higher-priced, higherservice operations, eventually becoming like the conventional retailers they replaced * Wholesaler A firm engaged primarily in selling goods and services to those buying money, and conventions and trade shows company should put most of its resources for resale or business use * Word-of-mouth influence Personal communication about a product between target buyers and neighbors, friends, family members and associates * Workload approach An approach to setting sales force size, whereby the company groups accounts into different size classes and then determines how many salespeople are needed to call on them the desired number of times * World Wide Web (WWW or the Web) A part of the Internet that uses a standard computer language to allow documents containing text, images, sound and video to be sent across the Internet directly to the desktops of target customers Companies can also sign on with Web-casting service providers, which automatically download customized information to the personal computers of subscribers to their services * Zone pricing A geographic pricing strategy in which the company sets up two or more zones All customers within a zone pay die same total price; the more distant the zone, the higher the price ... * Market targeting * Marketing * Marketing audit * Marketing budget * Marketing concept * Marketing control * Marketing database * Marketing environment * Marketing implementation * Marketing information system (MIS)... * Marketing information system (MIS) * Marketing intelligence * Marketing intermediaries * Marketing management * Marketing mix * Marketing process * Marketing research * Marketing services agencies * Marketing strategy * Marketing strategy statement... * Differentiated marketing * Direct investment * Direct-mail marketing * Direct marketing * Direct -marketing channel * Direct-response television marketing (DRTV) * Discount * Discount store * Dissonance-reducing buying behavior